Paul Keating has backed a treaty with Aboriginal and Torres Strait Islander people, describing it as the "unfinished business of the nation" and suggesting it could precede Indigenous recognition in the constitution.

The former prime minister also says he would back any move by Malcolm Turnbull to revive the minimalist model for an Australian republic that both men crafted in the early 1990s, conceding this might be the "last and best opportunity" to secure the model.

In an exclusive interview with Fairfax Media, Mr Keating says the push for Indigenous constitutional recognition has lost direction and needs to be given shape and form "by someone who believes in a treaty, someone who believes that the Aboriginal peoples need to be dealt with as a nation".

His comments come as new Prime Minister Malcolm Turnbull is being urged to re-set the relationship with Indigenous Australia and adopt a different approach to Tony Abbott.

Paul Keating says he would join Malcolm Turnbull in a push to revive a republic. Photo: Dallas Kilponen

"There are so many things that have caused disruption, anger and hurt in the Indigenous communities," says Professor Patrick Dodson. "There are bigger things to be done here and the biggest thing to be done is to re-set the relationship in a way that engenders dignity and respect and freedom for Indigenous people."

Professor Dodson welcomed Mr Keating's support for a treaty but argues constitutional recognition should come first. He has urged Mr Turnbull to allow Indigenous communities to decide on their preferred course before town hall meetings on recognition promised by Mr Abbott.

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In the interview, to coincide with the release of Keating, by Kerry O'Brien, Mr Keating has played down the importance of a prohibition on racial discrimination in "our very vanilla, horse-and-buggy constitution".

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He said a treaty, or compact, that dealt with Aboriginal people as a nation would complete the process he called for in his Redfern Park speech of 1992. "I think a constitutional recognition could follow the formality of such a compact or treaty. In other words, it would affirm and or acknowledge, rather than being the primary vehicle for it," he said.

On the republic, Mr Keating blamed John Howard for the defeat of the minimalist model that was proposed by the advisory committee chaired by Mr Turnbull that he appointed in 1993. "That's the great mark against Howard in respect of the republic: he will have now, probably forever, denied the country the right model," he said.

The model provided for a president appointed on the recommendation of both houses of parliament with the same reserve powers as the governor-general. Mr Keating sees the alternative of a directly-elected president as shifting the balance of power and authority away from the cabinet and the House of Representatives.

Asked if he would join Mr Turnbull on a platform if the Prime Minister revived the model, Mr Keating replied: "Of course I would."

Asked if this might represent the "best and last opportunity" to get that model up, he replied: "That's entirely likely."

There is no prospect of Mr Turnbull raising the republic in the near future, with a plebiscite on marriage equality and the referendum on Indigenous recognition promised by Mr Abbott already on the agenda if the Coalition wins the next election.

But Mr Keating continues to maintain a republic would offer economic benefits as well as "reinvigorate us about ourselves".

"The Chinese have this word, the chi, the blood energy. An Australian republic would revolutionise Australia's chi, the blood energy, and not just by telling us better who we are and affirming our sovereignty over the place, but it being a powerful economic event into the bargain."